Spotify has completed a $100 million financing round on a $3 billion valuation. Goldman Sachs is contributing 50%, Coke 10%, new investor Fidelity 15%, with the remainder coming from existing investors, according to the New York Times. While $10 million is a small stake for a company valued at $162 billion, Coca-Cola's move opens a significant new stream of capital for digital music. That stream could become a river if competitors like Pepsi follow.
In April of this year, Spoitfy and Coca-Cola released a vague joint announcement of a marketing partnership. No details were offered leading to speculation of a deeper relationship.
While Spotify continues to grow, it also continues to loose money, making this round important to the music streamer. Last year, Spotify raised $100 million from Kleiner Perkins Caufield & Byers and DST Global at a $1 billion valuation. The major record labels and Merlin also hold minority positions.
Spotify is estimated to have 15 million users with about 4 million of them paying subscribers.